Sarah Has a Checking Account at First Bank

question 5

Multiple Choice

Sarah has a checking account at First Bank.Orrin steals one of her blank checks, writes a check for $250 to himself, and then forges Sarah's signature.Orrin then indorses the instrument to Paul in payment of a debt.Paul, who does not know of the forgery, presents the instrument to First Bank for payment.At First Bank's request, Paul indorses the instrument, and the bank then pays him $250.Which of the following is correct?

• A) Orrin has breached the warranties on presentment.
• B) Paul has breached the warranties on presentment.
• C) Sarah has breached the warranties on presentment.
• D) All of these are correct.
• E) Both Paul and Orrin have breached the warranties on presentment.

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Definitions:

Dichlorophenol

A chemical compound consisting of a phenol molecule with two chlorine atoms attached, used in the manufacture of pesticides and disinfectants.

M-xylene

A type of xylene where two methyl groups are attached to a benzene ring in meta positions to each other.

Structure

The arrangement of atoms within a molecule, determining the molecule's shape and chemical behavior.

P-aminobenzoic Acid

A white crystalline substance that is a part of the vitamin B complex and is used in sunscreen products.